CASH FLOW MANAGEMENT ON FINANCIAL PERFORMANCE OF COMMERCAL BANKS IN ELDORET CITY COUNTY, KENYA

Abstract: The purpose of the study was to establish the effect of cash flow management on financial performance of commercial banks in Eldoret city county, Kenya. The study was based on the following specific objectives: - to establish effect of cash flow statement reporting on financial performance of commercial banks in Eldoret city county, Kenya, The study was based on Transaction Cost theory, Portfolio theory of Cash Management, Cash Management theory, Free Cash Flow theory and pecking order theory. The study used descriptive research design. The target population of the study was 32 employees in management and supervisory cadres (branch managers and credit managers) in commercial banks in Eldoret city county, Kenya. Census was adopted since the target population is small. Data collection instruments was questionnaires. Data collection methods was both primary and secondary. Pilot test was carried out for validity and reliability of research instruments. Data was analyzed using Statistical Package for Social Sciences (SPSS) windows version 27. Multiple linear regression analysis was carried out to test the significant levels of one variable to the other in the study. ANOVA was carried out to test the hypotheses of the study. The findings revealed that there was a significantly strong positive significant relationship between cash flow statement reporting on financial performance of commercial banks in Eldoret city county, Kenya. Basing on the findings, the study recommended that Banks should prioritize the preparation of timely, transparent, and comprehensive cashflow statements to enhance financial decision-making. Regular cashflow reporting enables management to assess the bank’s liquidity position, identify areas of inefficiency, and plan for future obligations. The study will be significant to the banking sector and the government of Kenya in formulation of different financial decisions and in policy making. Keywords: cash flow management, financial performance, commercial banks. Title: CASH FLOW MANAGEMENT ON FINANCIAL PERFORMANCE OF COMMERCAL BANKS IN ELDORET CITY COUNTY, KENYA Author: Pamela Kasaniak, Dr. Julius Miroga, Dr. Elizabeth Nambuswa Makokha International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 12, Issue 3, July 2025 - September 2025 Page No: 54-69 Paper Publications Website: www.paperpublications.org Published Date: 24-September-2025 DOI: https://doi.org/10.5281/zenodo.17194700 Paper Download Link (Source) https://www.paperpublications.org/upload/book/CASH%20FLOW%20MANAGEMENT%20ON%20FINANCIAL-24092025-1.pdf